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Depreciate in sentence

106 examples of Depreciate in a sentence

If the renminbi were to depreciate by, say, 2% every day, it would take very little time for the currency to lose 20% of its value – enough to cause a panic and, regardless of the country’s economic fundamentals, send the exchange rate into a tailspin.
If these countries lack the political consensus they need to pull this off, they should in their own interest consider leaving the eurozone temporarily to depreciate their currencies.
And, fourth, countries that are no longer competitive can exit Europe’s monetary union and depreciate their new currency.
Currency devaluation is a zero-sum game, because not all countries can depreciate and improve net exports at the same time.
How the euro would be able to depreciate, given that it is a floating currency with very little intervention – that is, the exchange rate is largely market determined – depends on monetary policy.
If the local interest rate is 17% per year and the dollar interest rate is 2%, it still makes sense to borrow in dollars as long as the domestic currency is expected to depreciate 15% or less.
The bonds would compare favorably with the government bonds of countries like the United States, the United Kingdom, and Japan, because the euro would depreciate, the shrunken eurozone would become competitive even with Germany, and its debt burden would fall as its economy grew.
According to the study by Goldman Sachs that I cited, it only needs to depreciate against the eurozone average by 10% or less.
Governments lack a national currency to depreciate, and lack the power to relax credit, having delegated monetary policy to the European Central Bank.
Reintroducing the national currency in order to depreciate it, but leaving the euro value of other financial instruments untouched, would destroy balance sheets and wreak financial havoc.
But that does not mean austerity is expansionary, especially if the currency cannot depreciate to stimulate exports.
Unlike the US dollar, there is no obvious way to put pressure on the European Central Bank to depreciate the currency in order to obtain a competitive advantage over other economies.
Falling inflation would make room for a more expansionary monetary policy, allowing the currency to depreciate in real terms and stimulating exports and growth.
Moreover, Japan’s trade balance is now in deficit, and, rather than boosting exports, as intended, QE in Japan has led some Asian countries to depreciate their own currencies.
The CBE allowed the exchange rate, which is formally defined as a “managed float,” to depreciate by only 3%.
Just as in the case of the United Kingdom since 2008, the Greek exchange rate would depreciate sharply.
First, FX is all about relative prices – if the dollar appreciates some other currency must depreciate.
Italy will have to depreciate by 10-15%, and Spain by roughly 20%.
One need not be an economist to figure out that, while all currencies can (and do) depreciate against something else (like gold, land, and other real assets), by definition they cannot all weaken against each other.
In order for some currencies to depreciate, others must appreciate.
It is also true, by definition, that not everyone can depreciate or improve their trade balance at the same time.
China does not want the renminbi to depreciate any more than Trump does.
First, its currency would naturally depreciate, making exports more competitive and imports more expensive.
Thus, for the dollar to depreciate further, it will have to depreciate against the currencies of China and other emerging markets.
Just as untenably high exchange rates must ultimately depreciate, default is necessary in cases of unsustainable sovereign debt.
Given the high rate of growth in China’s money supply, there could be considerable pressures for the yuan to actually depreciate, because a rate of monetary growth that exceeds the growth rate of economic activity tends to cause a currency’s exchange rate to fall.
But if Chinese savers expect the renminbi to depreciate further, this measure could be offset by capital outflows – even with the capital controls the government currently has in place.
When the market opened again, the new drachma would depreciate by 30-40% before finding an equilibrium.
Allowing their currencies to depreciate in real terms would make their products more competitive, and also provide an incentive for production to shift out of non-tradables into tradables.”
The other reserve-currency countries will probably continue to allow their currencies to depreciate, in order to reflate their economies, and emerging economies will probably continue to use exchange rates to cope with capital-flow volatility.
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